Whether the Special Education Fund May Be Utilized for Team Building Training of Education Stakeholders and for Purchase of School Buses

November 13 , 2012 DILG LEGAL OPINION NO. 063-12 Mayor Karen F. Villanueva Presidencia de Bais, E.C. Villanueva Street Bais City, Negros Oriental Dear Mayor Villanueva : This has reference to your 11 July 2012 letter referred to the Department on 03 September 2012 by COA-Legal Services Sector Office of the General Counsel Assistant Commissioner Elizabeth S. Soza. In your letter you posed a query on whether the Special Education Fund (SEF) may be utilized for the following purposes: team building training of its education stakeholders; and purchase of school buses, considering that these were not included among the items enumerated in the Local Government Code (hereinafter referred to as the "Code"), particularly Sections 100 (c) and 272 of the Code and under RA 5447. DHAcET Before answering the query, it should be noted that the disposition/utilization of the SEF is governed primarily by Sections 100 (c) and 272 of the Local Government Code (LGC), viz. : "Section 100. Meetings and Quorum. Budget. xxx xxx xxx (c) The annual school board budget shall give priority to the following: (1) Construction, repair and maintenance of school buildings and other facilities of public elementary and secondary schools; (2) Establishment and maintenance of extension classes where necessary; and (3) Sports activities at the division, district, municipal and barangay levels. Section 272. Application of Proceeds of the Additional One Percent SEF Tax. The Proceeds from the additional one percent (1%) tax on real property accruing to the Special Education Fund (SEF) shall be automatically released to the local school boards: Provided, That, in case of provinces, the proceeds shall be divided equally between the provincial and municipal school boards: Provided, however, That the proceeds shall be allocated for the operation and maintenance of public schools, constructions and repair of school buildings, facilities and equipment, educational research, purchase of books and periodicals, and sports development as determined and approved by the local school board. " [Underscoring, ours.] While the provisions of RA 5447 which are not expressly repealed by the LGC and those not inconsistent with the latter shall continue to govern the SEF's disposition, as held by the Supreme Court En Banc in The COA of the Province of Cebu vs. The Province of Cebu, et al., 1 viz. : "Evidently, what was expressly repealed by the Local Government Code was only Section 3, of R.A. No. 5447, which deals with the "Allocation of taxes on Virginia type cigarettes and duties on imported leaf tobacco." The legislature is presumed to know the existing laws, such that whenever it intends to repeal a particular or specific provision of law, it does so expressly. The failure to add a specific repealing clause particularly mentioning the statute to be repealed indicates that the intent was not to repeal any existing law on the matter, unless an irreconcilable inconsistency and repugnancy exists in the terms of the new and the old laws." aSAHCE Hence, consistent with the above ruling of the Supreme Court, the applicable provisions of Letter of Instructions No. 1462 (LOI 1462) Enhancing the Effectiveness of the Special Education Fund in Improving Elementary Education shall continue to govern the utilization of the SEF. Taking into account the above considerations, the matter to be determined herein is whether team building training and purchase of school buses fall within activities to be financed by the SEF. Sections 100 (c) and 272 of RA 7160 and the pertinent provisions of RA 5447 provides an exclusive enumeration for the allocation of the proceeds of the SEF. Both laws do NOT authorize the utilization of the SEF for trainings and purchase of vehicles. Moreover, LOI 1462 specifically include motor vehicles among the list of activities outside those allowed under RA 5447, viz. : "1.4 Except where authorized by Law, Local School Boards shall not appropriate, local officials shall not authorize and Treasurers shall not pay for activities outside of those allowed under R.A. No. 5447, such as the following: (a) basic salary to persons other than elementary school teachers, head teachers and elementary school principals, (b) construction and/or repair of buildings other than school buildings, (c) motor vehicles , (d) payment of maintenance and operating expenditures of agencies and offices other than the Local School Board itself, (e) purchase of forms other than those used in the school system, and (f) sponsorship of fairs, contests, exhibits and other related activities;" [Emphasis, ours] In view thereof, we opine that team building training and purchase of school buses do NOT fall within the activities authorized to be financed by the SEF. We hope to have enlightened you on the foregoing. aEcHCD Very truly yours, (SGD.) JESUS B. DOQUE IV Director III, Legal Service Footnotes 1. G.R. 141386, November 29, 2001.